The German government and the state of Lower Saxony have stepped in to rescue the historic Meyer Werft shipyard, known for its cruise ship production, with a substantial financial package.

The state intervention, valued at 400 million euros, includes acquiring 80% of the company's shares and providing guarantees to secure bank loans.

This move aims to safeguard thousands of jobs and maintain Germany's shipbuilding expertise.

The shipyard, despite having a full order book, faces financial difficulties due to contracts signed before the pandemic that do not account for rising energy and material costs.

The government plans to eventually return the company to private ownership once it regains financial stability, with expectations of profitability by 2028. The rescue also aligns with strategic interests, as the shipyard could play a role in military shipbuilding if geopolitical tensions rise.